As per CRA: You claim rental income and expenses on Form T776. Include rent collected from tenants as rental income in the current tax year. Claim tax deductions for any expenses related to your rental property. Common rental property expenses include home insurance, heat, hydro, water, and mortgage insurance. Claim the full amount of expenses if it is for a rental property, but only a percentage if it is for part of your principal residence.
Rental Expenses: You can deduct any reasonable expenses you incur to earn rental income.
For more information on what we consider a current or capital expense, go to Current expenses or capital expenses.
Some expenses you incur are not deductible. For more information, go to Rental expenses you cannot deduct.
Repairs and maintenance
You can deduct the cost of labor and materials for any minor repairs or maintenance done to the property you use to earn income. You cannot deduct the value of your own labor.
You cannot deduct costs you incur for repairs that are capital in nature. However, you can claim the capital cost allowance.
Capital Cost Allowance: which enhances the value of the property. For instance: if you upgraded the floors from carpet to hardwood to increase the value of your property, the expenses have to be added to the value of the property and depreciated in time.
Please let us know if you require any further assistance, we would be glad to guide you through.
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